Japan's Nikkei average fell 1.2 per cent today to a 26-year closing low, weighed down by a slide in other Asian bourses and car manufacturer losses amid concerns about the fate of General Motors.
Shares of Takeda Pharmaceutical, Japan's largest drugmaker, plunged 13.1 per cent after US. regulators said they needed more data before approving a key Takeda drug candidate, raising fears the drug may be delayed by years.
Investors were keen to see the outcome of a meeting between the US auto task force, GM, Chrysler and officials from the United Auto Workers in Detroit this week after auditors raised doubts about GM's ability to survive outside bankruptcy.
The benchmark Nikkei fell 87.07 points to 7,086.03, its lowest close since October 1982.
The broader Topix slipped 1.5 per cent to 710.53, a fresh 25-year low.
Market watchers said losses on Hong Kong's Hang Seng Index, which was down more than 2 per cent, helped drag the Nikkei lower.
Trade was light on the Tokyo exchange's first section, with 1.7 billion shares changing hands, below last week's daily average of 2 billion.
Car manufacturers fell as Honda Motor shed 2.1 per cent to 2,105 yen and Toyota slid 0.3 per cent to 2,890 yen.
Five-year credit default swaps on Honda Motor were quoted at 300-380 basis points earlier today, traders say, sharply up from bids of 270 points seen on Friday. Swaps prices reflect the cost of what investors pay to protect themselves from the risk of a company defaulting on its debt.
Other exporters including tech stocks declined on the gloomy US jobs data released on Friday. Canon slipped 1.4 perc ent to 2,160 yen.
Worries about the US financial sector and concern that some banks may be nationalised weighed on Japanese banks.
Mitsubishi UFJ Financial Group, the top lender, lost 5 per cent to 381 yen and Mizuho Financial Group retreated 3.4 per ent to 170 yen.
Among gainers, Inpex climbed 4.5 per cent to 648,000 yen after oil rose more than 2 per cent to near $47 a barrel amid optimism that Opec would cut output again at this month's meeting.
Falling stocks outnumbered advancing ones more than 2 to 1.
Reuters